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2 Growth Stocks With Strong Earnings Prospects to Buy in October
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Key Takeaways
NVIDIA posted 106% revenue growth and expects fiscal third-quarter revenues of about $108 billion.
Quanta Services' revenues rose 41.1%, while adjusted EPS jumped 71% in the second quarter.
Both companies have favorable earnings trends, with Quanta Services backed by a $53.4 billion backlog.
The month of October kicks off the fourth quarter with a mixed backdrop for investors. The U.S. economy remains stable, with the Commerce Department’s latest estimate showing real GDP expanded at a 2.2% annualized rate in the second quarter, while consumer spending rose 3.8%. At the same time, elevated inflation is making it difficult for the Federal Reserve to ease monetary policy aggressively, while higher interest rates continue to put pressure on stock valuations. The Federal Reserve’s September projections put 2026 PCE inflation at 3.7% and the federal funds rate at 4.1% at year-end, underscoring the possibility of higher rates for longer.
Against this backdrop, investors entering October may want to emphasize companies capable of delivering above-market revenue and earnings growth rather than relying solely on multiple expansion. This approach is particularly relevant as the market moves into the third-quarter earnings reporting cycle shortly.
Here, we suggest investors buy NVIDIA (NVDA - Free Report) and Quanta Services (PWR - Free Report) in October to boost portfolio growth, as both companies combine strong earnings growth prospects with favorable estimate trends and long-term business drivers.
Rising Earnings Estimates Support Growth Outlook
Earnings estimate trends also remain supportive heading into October. As shown in the chart below, the December 2026 EPS estimate for the S&P 500 has climbed to $8.45 as of September 2026 from $6.92 a year earlier, representing a 22.1% increase. Estimates have moved steadily higher through much of 2026, indicating improving earnings expectations.
Image Source: Zacks Investment Research
Against this backdrop, companies with strong fundamental growth and positive estimate revisions could remain particularly attractive as investors become increasingly selective heading into the third-quarter earnings season.
The opportunity, however, calls for selectivity rather than simply chasing stocks that have already rallied. September's sharp rise in Treasury yields and higher energy prices have increased concerns about inflation and borrowing costs, while the S&P 500 still posted a gain for the third quarter. Higher yields can create valuation pressure for rate-sensitive growth stocks, making earnings delivery increasingly important.
For investors looking to strengthen portfolios in October, growth stocks with visible earnings drivers, strong fundamentals and favorable estimate revision trends could therefore offer a way to participate in corporate profit expansion while maintaining greater focus on underlying business performance.
2 Growth Stocks to Buy in October
NVIDIA: It stands out as a growth candidate heading into October, supported by exceptionally strong demand for accelerated computing and AI infrastructure. The company reported fiscal 2027 second-quarter revenues of $96.2 billion, up 106% year over year, while guiding for fiscal third-quarter revenues of about $108 billion.
For growth investors, the Zacks Consensus Estimate as of late September called for fiscal 2027 revenues of $406.05 billion, up 88.04% year over year, while EPS was projected to increase 93.92%. The fiscal third-quarter consensus called for revenues of $109.02 billion and EPS of $2.47, implying year-over-year growth of 91.24% and 90%, respectively. NVDA carries a Zacks Rank #1 (Strong Buy) with an impressive five-year historical growth rate of 77.1%.
Image Source: Zacks Investment Research
Quanta Services: Beyond technology, Quanta Services offers exposure to growing investment in electricity transmission, grid modernization, power generation and other critical infrastructure. The company reported second-quarter 2026 revenues of $9.56 billion, up 41.1% year over year, while adjusted EPS jumped 71% to $4.24. Its backlog reached $53.4 billion at the end of the second quarter, up about 49% year over year, providing visibility into future project activity.
The Zacks Consensus Estimate calls for 55.3% EPS growth in 2026, well above the 19.4% industry average. Meanwhile, PWR's current year-over-year cash-flow growth stands at 21.2%, compared with 10.3% for the industry, according to Zacks. PWR carried a Zacks Rank #1 and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1, 2 (Buy) or 3 (Hold), offer the best upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
View the Zacks #1 Rank List
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2 Growth Stocks With Strong Earnings Prospects to Buy in October
Key Takeaways
The month of October kicks off the fourth quarter with a mixed backdrop for investors. The U.S. economy remains stable, with the Commerce Department’s latest estimate showing real GDP expanded at a 2.2% annualized rate in the second quarter, while consumer spending rose 3.8%. At the same time, elevated inflation is making it difficult for the Federal Reserve to ease monetary policy aggressively, while higher interest rates continue to put pressure on stock valuations. The Federal Reserve’s September projections put 2026 PCE inflation at 3.7% and the federal funds rate at 4.1% at year-end, underscoring the possibility of higher rates for longer.
Against this backdrop, investors entering October may want to emphasize companies capable of delivering above-market revenue and earnings growth rather than relying solely on multiple expansion. This approach is particularly relevant as the market moves into the third-quarter earnings reporting cycle shortly.
Here, we suggest investors buy NVIDIA (NVDA - Free Report) and Quanta Services (PWR - Free Report) in October to boost portfolio growth, as both companies combine strong earnings growth prospects with favorable estimate trends and long-term business drivers.
Rising Earnings Estimates Support Growth Outlook
Earnings estimate trends also remain supportive heading into October. As shown in the chart below, the December 2026 EPS estimate for the S&P 500 has climbed to $8.45 as of September 2026 from $6.92 a year earlier, representing a 22.1% increase. Estimates have moved steadily higher through much of 2026, indicating improving earnings expectations.
Image Source: Zacks Investment Research
Against this backdrop, companies with strong fundamental growth and positive estimate revisions could remain particularly attractive as investors become increasingly selective heading into the third-quarter earnings season.
The opportunity, however, calls for selectivity rather than simply chasing stocks that have already rallied. September's sharp rise in Treasury yields and higher energy prices have increased concerns about inflation and borrowing costs, while the S&P 500 still posted a gain for the third quarter. Higher yields can create valuation pressure for rate-sensitive growth stocks, making earnings delivery increasingly important.
For investors looking to strengthen portfolios in October, growth stocks with visible earnings drivers, strong fundamentals and favorable estimate revision trends could therefore offer a way to participate in corporate profit expansion while maintaining greater focus on underlying business performance.
2 Growth Stocks to Buy in October
NVIDIA: It stands out as a growth candidate heading into October, supported by exceptionally strong demand for accelerated computing and AI infrastructure. The company reported fiscal 2027 second-quarter revenues of $96.2 billion, up 106% year over year, while guiding for fiscal third-quarter revenues of about $108 billion.
For growth investors, the Zacks Consensus Estimate as of late September called for fiscal 2027 revenues of $406.05 billion, up 88.04% year over year, while EPS was projected to increase 93.92%. The fiscal third-quarter consensus called for revenues of $109.02 billion and EPS of $2.47, implying year-over-year growth of 91.24% and 90%, respectively. NVDA carries a Zacks Rank #1 (Strong Buy) with an impressive five-year historical growth rate of 77.1%.
Image Source: Zacks Investment Research
Quanta Services: Beyond technology, Quanta Services offers exposure to growing investment in electricity transmission, grid modernization, power generation and other critical infrastructure. The company reported second-quarter 2026 revenues of $9.56 billion, up 41.1% year over year, while adjusted EPS jumped 71% to $4.24. Its backlog reached $53.4 billion at the end of the second quarter, up about 49% year over year, providing visibility into future project activity.
The Zacks Consensus Estimate calls for 55.3% EPS growth in 2026, well above the 19.4% industry average. Meanwhile, PWR's current year-over-year cash-flow growth stands at 21.2%, compared with 10.3% for the industry, according to Zacks. PWR carried a Zacks Rank #1 and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1, 2 (Buy) or 3 (Hold), offer the best upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research